Fidelity bank card banner Camano banner
N800bn unpaid subsidy: Oil marketers threaten to shut depots

By News Express on 02/12/2018

Views: 534

•Oil tankers
•Oil tankers

Oil marketers on Sunday in Lagos gave the Federal Government seven-day ultimatum to settle outstanding debts totalling N800 billion, failing which depots would cease operation across the country.

The marketers, comprising Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and Independent Petroleum Products Importers (IPPIs), said failure to meet the deadline would force its members to disengage workers from depots.

Confirming the seven-day notice, Mr Patrick Etim, Legal Adviser to IPPI told the News Agency of Nigeria (NAN) that banks have taken over investments and assets of oil marketers over unpaid debts.

According to Etim, marketers have no chcice that to ask their workers to stay at home over unpaid salary arrears due to huge subsidy debts owed by the government.

“The only way to salvage the situation is for government to pay the oil marketers the outstanding debts through cash option instead of promissory note being proposed.

“As I speak, nothing has been done several months after assurances received by government saying it would pay off the outstanding debts.

“The oil marketers have requested that forex differential and interest component of government’s indebtedness to marketers be calculated up to December 2018 and be paid within next seven days from the date of the letter sent to the government,’’ he said.

Etim said that several thousand jobs were on the line in the industry, as oil marketers began cut-down of their workforce due to inability to pay salaries.

“At the inception of the current administration, marketers engaged the government with the view to secure approval for all outstanding subsidy-induced debts handed over to the current administration,’’ he said.

The counsel said that the current administration paid part of the debts with a substantial portion of the subsidy interest and foreign exchange differential still pending.

The Executive Secretary of DAPPMA, Mr Olufemi Adewole, also confirmed the seven-day ultimatum notice.

Adewole disclosed that the oil marketers on Nov. 28 served the ultimatum letter on the Debt Management Office (DMO), Minister of Finance, Chairman, Senate Committee on Petroleum Downstream, Department of State Services and Minister of State, Petroleum Resources.

“We urge the DMO to process and pay marketers in cash for their outstanding forex differentials and interest component claims, together with the amount already approved by the Federal Executive Council (FEC) and the National Assembly.

“Marketers are not in a position to discount payment on the subsidy-induced debt owed as proposed by DMO.

“The expected payment is made up of bank loans, outstanding admin charges due to PPPRA, outstanding bridging fund due Petroleum Equalisation Fund (Management) Board and in a few cases AMCON judgment debts.
“We urge that the Federal Executive Council (FEC) approved payment instrument, (the promissory note) be substituted with cash and paid through our bankers to stop the avoidable waste of public funds through these debts accruing interest,’’ he said.

DAPPMA also urged government institutions involved in resolving the lingering problem to appreciate the situation marketers faced and expedite payment of the debts in full without further delay.  (NAN)

Source News Express

Posted 02/12/2018 7:09:58 PM

 

 

CLASSIFIED ADS

 

You may also like...
Troops capture high profile Boko Haram terrorist

US-based Nigerian doctor removes wrong ovary from woman...

Gov. Abubakar pays N200m scholarship for Bauchi students...

Impeachment axe: Nyako, deputy pack out of Government...

Anambra to make Tansi’s tomb an international tourist...

Military traps Boko Haram fighters inside Sambisa Forest...

Muslims riot over film that shows Prophet Muhammad...

Prophet challenges lions to a fight to prove...

Why we are leaving International Criminal Court: South...

Parents grumble as FCE Akoka hikes fees tenfold...

MOSOP expresses worry over security situation ahead of...

Jubilation as 2013 NYSC Batch ‘B’ begins orientation...

 

Latest News Crisis hits Nigeria Centre for Disease Control office as DG refuses to leave after expiration of tenure War against corruption: EFCC challenges judiciary Certificate case dismissal: It’s time to build Kwara for all — AbdulRazaq Taxi driver kidnaps 10 children in Abuja 2023 Presidency: Buhari, Tinubu deceiving each other – Elder statesman Adebanjo Terrorists kill 7 policemen I arranged my kidnap to help my husband raise money – suspect Baby found alive inside plastic bag NDLEA arrests 362 suspected drug traffickers in Edo Troops neutralise three terrorists in Borno, recover weapons LASTMA officials, truck drivers clash during towing operation Lawmaker arrested after threatening foreign traders

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (498,843 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (427,446 views) Shameless Genevieve Nnaji exposes breasts in public (367,782 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (313,538 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (278,318 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (245,051 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (235,610 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (217,642 views) 10 cars more expensive than Jets (215,468 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (205,856 views) Lagos plane crash: Journalist releases victims’ names (185,759 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (184,820 views)

 

NNPC 2019 National Science Quiz Competition

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (94) Business & Economy (4,328) Business Verdict (75) Columnists (1,056) Complaints & Requests (95) Enterprise & Opportunities (209) Entertainment (627) Features (767) Global Business Monitor (384) ICT Monitor (53) International (3,628) Interview (184) Live Commentary (30) Love Matters (162) Maggie's Blog (314) News (47,828) Opinion (1,268) Pidgin (17) Politics (11,072) Religion (1,033) Sports (2,053) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera